UNEMPLOYMENT LEVY.

Wairarapa Age, 27 August 1930, Page 5

UNEMPLOYMENT LEVY.

GOVERNMENT TO RECONSIDER FLAT TAX. LABOUR MINISTER’S SURVEY. SOME CLAUSES PASSED'. (By Telegraph.—“ The Age” Special.) WELLINGTON, August 26. For the fifth time in the House of Representatives there was a general discussion to-day on the Unemployment Bill, this being on its short title when the Committee stage was reached. As there had. been only nominal amendments by the Select Committee to which tho Bill was referred, Labour members repeated their arguments against the Bill, particularly their objections to the flat tax of thirty shillings on all males. On the other hand, it was pointed out by Government and Reform members that high salaried individuals would contribute not only the flat tax but an additional income tax which would be utilised in financing the operations of the Employment Board. ■

When the discussion was ■ resumed after dinner, the Hon. S. G. Smith, Minister of Labour, urged members to pass the short title without further delay and deal with the clauses as they were reached. He indicated the amendments he would move and announced that the Government was prepared to reconsider the flat tax principle. He proposed to ask the Committee to postpone consideration of the clause providing for the Unemployment Fund and later would move the insertion of an additional sub-clause giving authority to advance £lOO,OOO from the Consolidated. Fund to the Unemployment Fund, so that if the Bill were passed and the board promptly appointed, it could start operations. In clause 6, specifying exemptions from the unemployment levy, he would make an amendment so that all pensioners would be exempt, but he could not go further, as if there were many more exemptions there would be no Unemployment Fund. There would also be an amendment proposed to the clause authorising the appointment, of coopted members, enabling them to have a status but not to vote. This would remove the objection that there was a possibility of the board being swamped by co-opted members. ADVANCES TO INDUSTRIES.

The Minister also indicated his intention of amending the clause defining the board’s functions so that it could not only make advances for establishing undertakings, but also to carry on existing ones. Though he said he did not have the timber industry especially in mind, it might happen that temporary assistance would be requested by timber millers which would enable the mills to continue employing a large number of workers.

Mr. H. T. Armstrong: “The flaxmillers are asking for it now.’’ Mr. Smith said he would ask for postponement of consideration of the unemployment levy clause, because of the appeal made that the Government should consider whether a graduated scale of contributions was practicable, workable and would bring in the money required and minimise any hardship which might be caused by a flat tax whether the flat tax was retained or a graduated payment introduced, he could see that there would still be many people who would say they found it difficult to pay whatever rate of tax was imposed. While he heard talk about men getting only £3 and £4 a week, he remembered that there were five thousand men registered as having no work and that there were 5300 on relief works. The object of the Bill was to find, not relief work, but as soon as possible, permanent work of a productive nature which would stimulate the country’s prosperity. He realised that he was facing a stupendous task, but he would do so without misgivings if he had an Employment Board which possessed the confidence of the House and country. He hoped when Parliament next assembled to be able to show that a great deal of good had been accomplished on lines entirely different from those which had at present to be followed by the Government. It had been found impossible for the Government to adopt all the recommendations of the Soldiers’ Rehabilitation Commission, as they involved an expenditure of oven a million sterling, but he was including a soldiers’ representative on the Employment Board because it would have power to arrange vocational training, which was what many returned soldiers wanted, to place themselves in a better position. Thus he was hopeful in this respect that the board might do something this year. A GREAT MISTAKE. The lit. Hon. J. G. Coates, Leader of the Opposition, declared that the Government would be making a great mistake if it postponed the unemployment levy clause, because the Committee must consider the Bill as a whole, and Clause 5 was the key of the whole situation. It would not be possible to render assistance without adequate funds and they wanted to be sure as to of the taxation in its influence on restricting capital. The only now capital was to be obtained from the savings of the people. PROGRESS REPORTED. The Committee soon afterwards passed the short title of the Bill and also the clause establishing an Unemployment Fund and setting up a board. Progress was reported when Clause 5, dealing with the unemployment levy, was reached.